Sustainability in Logistics: 13 Best Practices

Consumers love when their orders arrive on time or even quicker than expected. Receiving many parcels at the same time from different parts of the world can create a jolly Christmas morning feeling. But what does it mean for the world? It’s drowning in plastic and coughing carbon dioxide. Sustainable logistics is an essential step towards a greener world.

Why Is Sustainable Logistics Important?

The transportation sector is one of the biggest causes of carbon dioxide emissions in the EU. According to the European Environment Agency, the EU transport sector’s greenhouse gas (GHG) emissions are growing. They currently account for around 25% of the EU’s total emissions.

Let us remind you that GHG is the main cause of global warming and climate change. So it’s safe to say that integrating sustainability into logistics and supply chain contributes to saving our planet.

The main reasons sustainable or green logistics is important are:

• Reduced emissions — as we already mentioned, logistics significantly contribute to polluting our planet. Reducing emissions can help reduce this impact.
• Fewer waste products — transportation involves many elements with a limited life span. For example, tires, oil, and mechanical tools. These components add up to waste, which also boosts transportation costs.
• Compliance with government guidelines — the European Commission has set a roadmap to sustainable economies, including the transportation sector. The goal of the European Green Deal is to reduce transport-related GHG emissions by 90% by 2050.
• More profit — adopting sustainable practices can help logistics companies increase profits. Implementing sustainable solutions pays off. It can cut down costs and save companies from paying various waste taxes or pollution-related fines.

It’s clear that sustainable logistics is important. Now, let’s see how you can make your logistics more sustainable.

How Can You Make Your Logistics Sustainable?

We listed the best practices for sustainable logistics. These will help you improve your business and contribute to a greener environment.

1. Implement Sustainable Logistics Practices

Adopt and navigate sustainable logistics practices across the supply chain. This way, you’ll reduce environmental impact and promote sustainability.

These practices can include:

• Working with local suppliers.
• Ensuring transportation containers are full. Otherwise, you’re wasting energy transporting partial loads.
• Routing loads through locations based on proximity to avoid extra mileage.

This doesn’t mean you have to change everything you’ve been doing all at once. Start by implementing the best practices of sustainable logistics that are simple but can show great results. Introduce extra steps when you’re ready.

2. Manage Carbon Footprint

According to the British Chambers of Commerce, only one in 10 small businesses measure their carbon footprint. This means that 90% of small companies aren’t aware of how much greenhouse gases (GHG) their business generates.

You should calculate the carbon footprint of your logistics operations. This will help you integrate strategies to reduce your carbon emissions.

3. Optimise Supply Chain Efficiency

Supply chain operations can have a massive impact on your business’s sustainability. Enhance supply chain operations to improve efficiency, minimise waste, and reduce environmental footprint.

4. Promote Sustainable Packaging

We’ve all received packages extensively wrapped in plastic, which we instantly binned. Needless to say, this is not helpful to the environment. Using sustainable packaging materials and design will minimise waste and make your business more environmentally friendly.

5. Integrate Sustainability into Supply Chain Management

Choosing sustainable partners is your responsibility. Find out about their carbon footprint and work with logistics providers and suppliers that share similar values. You can do it by incorporating sustainability considerations into supply chain management practices. For example, supplier selection, transportation planning, and distribution.

6. Use Renewable Energy

Renewable energy sources emit little to zero GHG into the air. Transition to renewable energy sources, such as solar systems or clean energy-powered electricity. This will reduce your reliance on fossil fuels and lower energy usage.

7. Implement Water Recycling Systems

Seemingly small things add up to big changes. One of those is water recycling. Water recycling systems take wastewater and treat it until it’s suitable for reuse.

Install these recycling systems in distribution facilities. This will minimise water usage and promote sustainable resource management.

8. Improve Freight Collaboration

Freight collaboration enables shippers to tender and carry out a freight order with a network of carriers. So instead of having a vehicle return empty or half-empty, you can team up with other businesses and have a full load.

This way, you’ll improve efficiency, reduce empty miles, and lower fuel consumption.

9. Promote the Use of Recycled Materials

We’ve already mentioned that using sustainable packaging is important, but you can do even more. Encourage the use of recycled materials in packaging, transport vehicles, and logistics operations. This way, you’ll support a circular economy and reduce the consumption of raw materials. All this contributes to sustainability.

10. Optimise Last Mile Delivery

Research shows that last-mile delivery accounts for up to 50% of all delivery vehicle carbon dioxide emissions. This is a striking number, and reducing it can bring a significant impact.

To enhance logistics sustainability, install strategies to reduce last-mile emissions. Not sure where to start? Use eco-friendly vehicles, combine on-site retail, and strategically locate pop-up warehouses.

11. Enhance Fuel Efficiency

It’s worth looking into ways to increase fuel efficiency. For example, keeping a steady speed, decluttering your vehicle, and using cruise control. You can find many ways to use less fuel.

As a result, your company will be saving money and reducing air pollution.

12. Promote Social Responsibility

Become more sustainable by promoting social and environmental responsibility inside the company. Engaging in socially responsible initiatives will help you achieve this. Consider supporting fair labour practices and providing safe working conditions within logistics operations.

13. Foster Financial Growth through Sustainability

Sustainable practices can help you grow your business and generate more revenue. Implementing the best practices for sustainable supply chains will bring positive results. For example, cost savings, improved efficiency, and increased customer loyalty. This will ultimately drive your company’s financial growth.

What Are the Main Drivers for Sustainable Logistics?

We identified the main drivers for sustainability in logistics:

• Awareness — like with most things in life, changes start with awareness. Measure and track your business’s environmental impact so you can build a sustainable business.
• Route optimisation and planning — make sure your routes are efficient. To ensure this, embrace freight collaboration and digital platforms. This will help optimise logistics planning, enhance visibility, and increase sustainability through efficient route planning and inventory management.
• Supply chain optimisation — prioritising local logistics suppliers will reduce transportation distances, support the local economy, and minimise carbon emissions associated with long-distance transportation.
• Technology — new devices and software appear on the market every day. These technological solutions are created to make processes more efficient and enhance sustainability.

Why Sustainable Logistics Is Good for Business

Sustainable logistics benefits both the environment and your business. If knowing that your business doesn’t kill the planet is not enough, then look at the other benefits your company gets by offering green logistics:

• Streamlined logistics operations — various management systems help companies streamline the logistics chain. It creates more effective and environment-friendly transportation processes.
• Reduced waste — going paperless, reusing tools, and recycling will reduce your waste and save costs. Waste reduction strategies will minimise your environmental impact and promote sustainability. To achieve this, look into recycling programs, waste segregation, and process improvements.
• Meeting sustainability targets — sustainability is becoming highly regulated, especially in the transportation industry. Failing to meet set requirements can cost companies their reputation and more.
• Better customer satisfaction — consumers expect companies to go green. This shows social responsibility and commitment to sustainability. In the age of social media, good practices don’t go unnoticed. Yet, the same applies to shortcomings.

Make Your Logistics More Sustainable With Spotos

Spotos is a freight exchange platform. It conveniently connects shippers and carriers while promoting green logistics. Spotos enables transport companies, logistics providers, and businesses of all sizes to find their freight load match in a few minutes.

Freight collaboration ensures that transport businesses never have to see empty vehicles again. It also enables small and medium shippers to have their goods delivered securely and promptly.

If you’re looking for the best way to make your logistics more sustainable, start with Spotos!